Why Tools Matter Well-designed tools: improve accuracy reduce cost enable scalability Poor Tool Design too much data unclear structure confusing outputs Best Practices manage tool outputs keep structure consistent handle errors properly Tool Output Impact large outputs increase token usage affects performance and cost Designing Effective Tools for AI Agents Why Tools Matter Well-designed tools: improve accuracy reduce cost enable scalability Poor Tool Design too much data unclear structure confusing outputs Best Practices manage tool outputs keep structure consistent handle errors properly Tool Output Impact large outputs increase token usage affects performance and cost